Europe replaces Russian coal supply shortages with purchases in Indonesia

Coal mines and sales

Indonesia’s second-largest miner, Adaro Energy Indonesia, has delivered around 300,000 tons of coal to the European Union. The countries of the twenty-seven are looking for alternative suppliers who would be able to cover the supply shortfall from Russia due to sanctions.

The primary market remains the countries of Southeast Asia

A shipment of 300,000 tons of Indonesian coal earlier this week went to Spain and the Netherlands. Adaro Energy Indonesia CFO Lie Luckman told Reuters. According to him, however, the primary market for Indonesia’s second-largest coal miner remains countries in the Southeast Asian region.

“We focus on meeting our commitments to our customers under long-term contracts,” Luckman said. Customers from Japan, China, South Korea and India remain a priority, although Luckman admitted that his company perceives increased demand from Europe, even though Europe offers higher prices.

Capacities down at full speed

Indonesian miners are currently not even able to supply a larger volume of coal than they are currently mining. The capacity of their mines is running at full speed, so they would have to make additional investments to increase production, but this would take some time. However, European countries need to cover the supply shortfall from Russia right now.


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